MONEY

Deere reaches labor deal; will workers accept it?

Donnelle Eller

deller@dmreg.com

Deere and Co. has proposed buying Monsanto's Precision Planting equipment unit, a deal the Justice Department says would stifle competition and increase costs.

Deere & Co. and United Auto Workers have reached a tentative labor agreement that would cover 10,000 workers at 12 factories, most of which are in Iowa and Illinois, the company confirmed early Thursday morning.

Deere said details of the new six-year master contract will be presented to workers but will not be made public.

A membership vote to ratify the agreement is expected to take place Sunday.

Union officials were notifying workers Thursday morning to return to their shifts as normal. The agreement staves off a potential work stoppage.

The existing six-year contract expired at midnight Thursday.

The contract would cover workers in Ankeny, Cedar Falls-Waterloo, Dubuque, the Quad Cities and Ottumwa.

Agriculture experts had predicted a possible protracted negotiation process in which Deere had leverage because of the sagging farm economy that has slowed sales and overstocked inventory.